The relationship between transformational leadership and innovation in Literature review

The relationship between transformational leadership and innovation in the Bahraini banking system - Literature review Example The intention of this study is innovation as a quality which has become increasingly important to the survival of all kinds of companies in the fast changing and globalised world of today. The many articles in the media following the death of Steve Jobs in late 2011 have reminded businesses of the competitive advantage that innovation brings to a company, but at the same time there is much discussion about the type of leadership style that this innovator inflicted upon his colleagues. Some theorists claim that there is such a thing as an â€Å"innovation leader†: â€Å"Innovation leaders are senior executives –whatever their functions or positions – who spontaneously instigate, sponsor and steer innovation in their organizations.† This view suggests that the job of innovation one that belongs at the top of the organisational hierarchy. Other theorists, leaning on the earlier work of Weber, stress the importance of charisma, theorizing that some individuals have personal traits that mark them out as special, and allow them to play a particularly dynamic and effective leadership role, athough there have been some debates about how to define this elusive quality. Charismatic leadership engages the emotions in a positive way, making the members of the organisation feel that they belong, and in a best case scenario also increasing their motivation and efforts towards the corporate aims. It does this by building trust, creating shared beliefs, engendering positive feelings about the leader, and getting workers and managers alike to feel involved in the project. (Yukl, 1981) It has been pointed out that there is also a downside to the